Comment on Entain H1 trading update

Neil Shah, Managing Director at Edison Group, feedback:

“Entain’s H1 trading update reveals a stable set of outcomes, with complete Group web gaming income up 11% to roughly $350m and a rise of 28% in on-line efficiency. Sports betting particularly noticed notable development of 55% as pandemic restrictions lifted {and professional} sports activities exercise returned to our screens. The Group’s H1 efficiency was largely pushed by elevated momentum in Q2, which noticed a complete NGR rise of 42% due to sturdy efficiency in international markets excluding Germany, which the corporate famous continues to be feeling the influence of regulatory adjustments.

Despite income development of 47percentcc in on-line gaming, the group recognised that this mirrored just one% improve on a difficult comparative yr previous to 2019. Elsewhere, a 359% improve in Q2 retail NGR was not sufficient to offset general losses within the sector, with retail NGR down 42% within the half.

Nevertheless, the corporate is in good stead to keep up momentum, and the announcement that the group can be doubling its funding into in-house video games studios alerts a dedication to strategic enlargement. Investors will discover confidence within the group’s expectations that FY21 EBITDA can be forward of present consensus within the vary of £850m – £900m.”